URA launches two GLS sites with potential to yield 1,375 units

On Mar 16, the URA launched two residential sites at Mattar Road and Silat Avenue for sale by public tender. They are under the Confirmed List of the first half of 2018 Government Land Sales (GLS) Programme. In a statement released by the URA, these two 99-year leasehold sites can potentially yield a total of 1,375 residential units.

The land parcel at Mattar Road sits on a site of about 67,061 sq ft, with a maximum gross floor area (GFA) of 201,188 sq ft. It is zoned residential and can yield an estimated 250 units.

The site at Silat Avenue is about 245,972 sq ft with a maximum GFA of 910,099 sq ft. It is zoned for residential development, with commercial on the first storey, and has the potential to yield an estimated 1,125 units.

The future development on the site at Silat Avenue is to be sensitively integrated with the section of the Rail Corridor located adjacent to it. The Rail Corridor which spans 24km from the north to the south of the island will be turned into a community space, with seamless leisure corridor, featuring greenery and Singapore’s railway heritage landmarks.

The most recent land sale in the area is the collective sale of Pearl Bank Apartments, an ageing 99-year leasehold condo that was sold en bloc to CapitaLand for $728 million, or $1,515 psf per plot ratio (ppr). Lee Nai Jia, head of research for Edmund Tie & Co (ET&Co) anticipates that the winning bid could be in the range of $1,300 to $1,400 psf ppr, based on current market conditions.

As for the site at Mattar Road, ET&Co notes that the most recent land sale in the vicinity was the collective sale of Eunosville, a privatised HUDC estate, that was sold to MCL Land in June last year for $765 million, or $909 psf ppr. He therefore expects the site at Mattar Road to fetch around $1,100 psf ppr. Lee sees the Mattar Road site benefiting from its proximity to Paya Lebar Central, with the Paya Lebar Quarter integrated development completing over the next two years.

The tender for the two sites will close at 12 noon on April 26, and they will be batched with the closing of residential site launched on Feb 27, namely the Cuscaden Road site.